Coinbase custodial business is said to take part in the launch of the $500 million bitcoin fund in cooperation with Wilshire Phoenix. The new fund will mainly deal with institutional investors.
The new business is said to be a statutory trust and likely to come into operation until the end of this year. Its capital will be limited – $500 million. After the launch of the fund, investors will get an access to the segment via another regulated solution.
"Coinbase Custody provides Wilshire Phoenix with a best in a class platform on which to securely store digital assets. They are steadfast in their commitment to implementing and executing solutions for institutional clients as opposed to merely talking about their future plans to do so. We are excited to have Coinbase in our corner and we look forward to our continued partnership in the months and years to come,” noted Bill Herrmann, Founder & CEO of Wilshire Phoenix.
It is worth mentioning that the fund will support bitcoin, though it will apply a brand new way to reduce risks of sudden price changes. Besides, the bitcoin pricing model is said to be very complicated under the US Generally Accepted Accounting Principles. Wilshire Phoenix believes that their system may help to avoid these challenges. The company targets the patent for now.
In addition, the new business will reportedly avoid derivatives or marginal trading.
Coinbase, in its turn, is also glad to enter in this agreement "to provide institutional-grade, compliant digital-asset custody." Along with custodial services, Coinbase branch will offer GAAP auditing of the assets when required.